INTERESTING AND HOPEFUL VIEW

Dominion, Volume 2, Issue 482, 15 April 1909, Page 6

INTERESTING AND HOPEFUL VIEW

i BY ME. H. BEAUCHAMP. | (Dt TELEGHAJK—PRESS ASSOCIATION.) 1 y Auckland, April 14. ' j Some interesting views were expressed , by Mr. H. Beauchamp, chairman of directors ' of .the Bank of New Zealand, to-day, con- | cerning tho stringency in the monoy market. : The interview was the outcome of tho pub- ] lished reports of the discussion in Welling- * ton by the New Zealand Chambers of Com- j merco Conference and tho Prime Minister's J statements in reply.• Mr. Ueauchamp said that he did not bo- j lievo that there ■ would be any real relief until thero was a .marked improvement in ' tho trade of the.; United Kingdom, which) J after all, was the principal market for "he 1 major portion of our products. "True," ] said Mr.. Beauchamp, "there has been an I appreciable advanco in wool, but there are ' several other products, such'as hemp, gum, ! and frozon mutton, which are exceedingly ' low. At.the same .time thero is one satisfactory feaiwre, and. that is the slight decline that Tias occurred in the values of stocks in public companies in this country. If you refer to the quotations issued hy the Stock Exchanges of tho Dominion from .day to day, you will find that thero are scarcely any stocks in public companies that wi'l yield an ! investor' anything boyond 5 per 1 cent. This shows that there must be a [ large number of ..people who are not in j severe financial straits'. "1 am of opinion," continued Mr. Beau- c champ, "that the class chiefly suffering from 1 the money stringency comprises thoso who c have indulged in over-speculation in land, i and who are now experiencing a difficulty 1 in raising the necessary money to meet in- • stalments as they fall due. Too much land, 1 especially country land, was bought at boom ; prices on the .assumption that tho produce 1 of New Zealand .was.going to command ex- I trome rates indefinitely. In other words, no 1 room was left, for, the drop experienced in < the last year or two. Personally, lam hopeful that financial equilibrium will be restored by reducing imports, and by the practico of economy in. public and in private expenditure. This is undoubtedly already talc- ' ing place, "arid the benefit ought to bo felt 1 in the next 12 months." Mr. Beauchamp stated, in reply to a question, that he did not think that there was much chance of. the bank rates being raised in the near. future. He thought that it would be admitted that the banks had done more than their duty to the public during the past 12 months by so snbstan- ' tially increasing overdrafts and discounts. 1 He had seen exception taken to the policy 1 of the banks in beeping large funds in Ix>n- : don. in that connection, however, ho wou'd point out that the banks would not have 1 been in a position to.assist their clients, as they had done if these funds in London i had not been readily available for transfer ' to the Dominion. . . 1 In reply to another question, Mr. Bfsu- ' champ stated that he favoured tho borrow- ' ing of money by the Government as far as ■ possible outside the Dominion, recognising 1 the fact that this 'country was too young to carry out the so-called self-reliant policy.